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Sonic Labs wins a ruling that forces the liquidation of the Multichain Foundation

A High Court in Singapore has ruled in favor of Sonic Labs' request to force the Multichain Foundation to liquidate. A High Court in Singapore has ruled in favor of Sonic Labs' request to force the Multichain Foundation to liquidate in an effort to recover the funds stolen during a hack in 2023.

In the ruling issued on May 9 in the Supreme Court of Singapore, Judge Kwek Mean Luck granted Sonic Labs' request, formerly Fantom Foundation, to declare Multichain bankrupt and appoint liquidators from the global audit, tax, and advisory service KPMG.

The CEO of Sonic Labs, Michael Kong, stated in a declaration on X on May 14 that the team behind the layer 1 Sonic blockchain felt they had no choice but to file a lawsuit to force the liquidation of Multichain because its former employees were being "very uncooperative" and "hiding from the victims."

"Moving forward, the liquidators can now begin working with other parties to initiate the process of trying to acquire funds that should eventually be returned to users if those legal proceedings are successful," said Kong.